Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

HBOS and RBS bosses apologise while anger over bonuses grows

11 February 2009 / by Rebecca Sargent

The former chiefs of both HBOS and RBS have formerly apologised for their part in the global banking crisis.

Brought together in front of the Treasury Select Committee yesterday, the ex bank chiefs HBOS' Lord Stevenson and Andy Hornby, and RBS's Tom McKillop and Sir Fred Goodwin said sorry for the parts they have played.

Both RBS and HBOS have had to be bailed out since the credit crisis began and the Government now owns a 68 per cent stake in RBS, while HBOS has become part of the newly formed Lloyds Banking Group.

Addressing the Committee, former chairman of HBOS, Lord Stevenson said: "We are profoundly, and I think I would say unreservedly sorry at the turn of events."

He went on to apologise for the anxiety and uncertainty caused to both staff and customers and the effect that the banks' failure has had on the community.

RBS's Tom McKillop reiterated Stevenson's apology.

The Committee also addressed the issue of bonuses which has been at the centre of controversy this week since it was reported that RBS would be paying £1billion in bonuses.

RBS' Fred Goodwin and HBOS' Andy Hornby said they did not take a bonus last year, and Mr Hornby admitted that the bonus culture which is prominent in the City does need to be addressed.

Labour MP John Prescott has since launched a petition over City bonuses, which has so far received 16,756 signatures. He told BBC One's Breakfast this morning:

"This is unacceptable, No ifs, no buts, don't pay the bonuses."

One supporter, Valerie Shaw, commented on the petition, saying: "The Bankers have been totally irresponsible and are far too highly paid. Bonuses should never have been introduced in the first place – and certainly should NOT be taken now."

Existing banking chiefs, including those of newly formed Lloyds Banking Group will give evidence this afternoon as the Banking Crisis investigation continues – Lloyds TSB's Eric Daniels is expected to announce that he also did not take a bonus for 2008.